Contact David Kirk direct by clicking on his name to email him

01392 474303

Creditors Voluntary Liquidation

How to close an insolvent limited company

We can do everything to liquidate online. No need to meet unless you want to.

Usually, the quickest and cheapest method is liquidation. This is the same as Creditors Voluntary Liquidation or “CVL” for short.

This decision to liquidate is first taken by the company directors – no one else. You can choose us.

The whole process from instructing us to the date of liquidation usually takes about 10 to 14 days.

Everything to liquidate is done online and we send you the paperwork to sign via Adobe Sign, so you get copies to keep. There is no need to print lots of documents and post them back to us.

Key Features of Liquidation:

  • It is quick – usually 10 days.
  • It is relatively cheap.
  • There is usually no creditors meeting.
  • There is no need to finish accounts or VAT/PAYE returns anymore.
  • It allows employees to claim redundancy from the UK Government fund.
  • It writes off unsecured creditors like bank Bounce Back Loans, CBIL’s loans below £250,000, suppliers, VAT, PAYE and other liabilities like business rates.
  • It does not automatically stop you being a director of another company.
  • We take over and deal with all the creditors for you.

Some downsides though

  • It does not clear creditors who have a personal guarantee like Funding Circle.
  • All the company assets are used to pay back the company creditors, so shareholders are unlikely to get paid.
  • If you owe the company money you will have to pay it back.
CVL Process

What Happens Next?

We send you a list of what we need. This includes a list of creditors, assets, employees and other financial information we need. If you want to see the list as a PDF click here.

If you want to discuss anything you can telephone us or we can arrange a Zoom or Teams meeting or a meeting at our office or your premises.
We then agree with you the target date of actual liquidation – usually within 7 plus days.
We then prepare all the paperwork for the directors to sign. As liquidation is a three-stage process this paperwork includes:

  • The directors meeting to decide to liquidate.
  • The notices to shareholders.
  • The notice to creditors.

The notice to creditors is for a deemed consent liquidation. This means there is no creditors meeting – although creditors can request one if more than 10% want a meeting. The meeting can be by Zoom or Teams.

We prepare a report to creditors and shareholders to send out before the date of liquidation. We usually publish this online with access by a password only.

We take the pressure off you during this period and deal with your creditors. We also help the employees make their redundancy clams from the Government.

The company then goes into liquidation on the target date.

The First Few Months

After the company has gone into liquidation, we carry out the following tasks:

  • Close any premises.
  • Collect and business records.
  • Collect in any assets such as equipment, stock, and debtors.
  • Close the company bank accounts.
  • Help employees make their claims for unpaid salary and redundancy from the Government.
  • Agree creditors’ claims.
  • Make a report to the Insolvency Service.

Our usual aim for a less complex liquidation is to close the case and have paid out any creditors by the anniversary date.

 

Costs

It is a relatively cheap process compared to other routes such as Administration or a Compulsory Liquidation which may involve legal fees.

We charge a fixed fee to liquidate the company of between £3,000 to £5,000 plus VAT (depending on complexity) and can be paid from company assets.

The lower end of the fee rate is charged for smaller companies with no employees and only a few creditors.

We then get paid post liquidation (from company assets) depending on how much work we have to do.

The Next Stage

Please contact us with any questions you have or if you would like to arrange a call or meeting.

David Kirk says:

“We provide a UK wide service and take care of everything. We act quickly and are helpful and supportive. We return your emails and telephone calls.”

You can also email me direct if you have any questions on david@kirks.co.uk

Reviews

“They promised a straightforward process and certainly delivered – I highly recommend the team at Kirks.”

Danielle F

“Kirks offered a cost-effective and reliable service. They were responsive to any queries/issues in the winding-up process – thank you.”

Patrick T

“A fixed fee arrangement provided us with reassurance and David explained the process clearly to us at the outset. A very professional service all round.”

David M

“Kirks provided a very efficient and cost-effective service. They offered support and advice throughout the process and made prompt payments. It was a very professional and helpful service.”

Richard T

“I had already met with a number of other insolvency practitioners none of whom I considered to be as clear cut and up front as David. The liquidation was executed quickly and professionally and I really am happy.”

Anon

We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk - Kirks Insolvency Call Back

David Kirk

Licensed Insolvency Practitioner